tv [untitled] August 23, 2011 8:30pm-9:00pm EDT
and from its name rich notional altie to moscow's hama syria and that doesn't for now but for more on the stories we covered go to our team dot com slash usa or youtube dot com slash r t america i'm christine for south and so much for watching have a good night. wealthy british sunny all. the time to explain the. markets find out. why not what's really happening to the global economy with much stronger the no holds barred look at the global financial headlines tune in to cause
a report on our cheap. download the official policy of the kaisha joint phone the i pod touch from the choose ups to. like on the go. video on demand keys month old calls. an r.s.s. feeds now in the palm of your. com. we'll. bring you the latest in something instance technology from around the world. we've got the future are covered. by imax kaiser this is the kaiser report. stacy herbert apparently the vampire
squid is back to devour us and only an alien invasion force can save us stacy herbert yes max well the global financial deflationary collapse that continues to this day almost three years later apparently only inflation can save us and placement is impossible by the central banks the only thing that could stop it is here's paul krugman if we discovered. your space aliens were planning to attack and we needed a massive build up to counter the space alien threat and really the budget just took secondary place to that. this slump would be over in eighteen months twilight zone economics so paul krugman over there the new york times all of the stimulus package the work ready shovel ready to lucian have all failed and he's calling it an invasion from outer space to rally the economy to
overcome what is essentially still bad behavior in the banks yeah and max you know you read the front page of the financial times and there's no more bunkers than an alien invasion as a possible hope paul krugman hopes of an alien invasion are no more daft than people believing that central bankers might save us that they might save our economy move to curb swiss francs rise backfires as you see there. so praeter shrugged off new measures by the swiss authorities to stem demand for their currency sending the swiss franc sharply higher the franc jumped by two percent in just a matter of minutes as traders ignored the swiss national banks decision to almost double the amount of liquidity yvel it will to the money market oh look the central bank is a force that resides outside of the economy and it's there to provide theoretically
speaking price stability and full employment that's their charter but they got sucked into the bank they got sucked into the parasite that is the banking system so now a sense earth is no longer available as a location to create a central bank policymakers and keynesians brainiacs are saying well let's just create a central bank outside of earth or depend on an invasion from outer space aliens from abroad of course some would also argue that this is a thinly veiled reference for the need to create more war because people often say well world war two go to america of a depression so having failed to stimulate the economy by say imposing the rule of law and by eliminating parasite bankers and imposing true accountability they want to go and send us servicemen and servicemen from other countries to the front line
and get slaughtered so that paul krugman doesn't look like an intellectual pig being well speaking of war an act of war has of course spent a clarity over the past week chavez orders eleven billion dollars of gold home venezuela's finance minister jorge do your depth johnny said that the weakening u.s. dollar and near default by the u.s. government and the european sovereign debt crisis threaten venezuela's savings and they will be more secure at home and in allied countries yeah that's right the veriest goal. old hoards by various countries are not held in those various countries we've talked at length on this show about germany sixty percent of their gold is held in america now hugo chavez of venezuela is saying we want our gold two hundred tons of it to be brought home and then held in the bank of england and of course the bank of england is not the only person holding the gold because tony and also include banks such as j.p.
morgan so it's as if you go chavez watches our show realize that they crash j.p. morgan by so over a campaign could be applied to gold is demanding physical delivery of his gold because you know that j.p. morgan and the other banks don't actually have the physical gold they have to go into the market to buy that gold but they're bankrupt to begin with that means they have to incur more debt which means that they're going he's trying to collapse j.p. morgan just like we're trying to collapse j.p. morgan so hugo chávez welcome to the gold liberation army yeah but the point is whether or not he'll ever get this gold back because he's put in a request but is this going to trigger other people demanding their gold back other nations demanding their sovereign gold back there are thousands of tons held by germany at the new york fed all countries around the world story in the u.s. will the u.s. give that back that's the big question what do you think well i think you know i think the record is correct i would say i would agree with both you and jim rickards that these countries that he's made a big story out of this he believes that america should commandeer the world's gold
which would give them something like fourteen thousand tons in toto and make them on the glide path toward having a post keynesian post be our currency economy based on having the most gold but you're right this is a huge set up for a global conflict. so you have as says this max quote we've held ninety nine tons of gold at the bank of england since one thousand nine hundred eighty i agree with bringing that home it's a healthy decision max the only way congress chavez is getting that back as he comes back to with an alien invasion force hugo chavez well he's good friends with of course oliver stone and sean penn and noam chomsky maybe they can put together an invasion force go into the vaults in the bank of england and liberate venezuela is gold at the least it could be a great movie but max alvarez is not the only one seeking gold gold
equals treasuries the evidence a stunningly high correlation of gold to twenty year treasuries from july twenty first through august sixteenth is point eight nine over that period gold is up twelve point three percent and treasuries are up eleven point eight percent i will result the conundrum that people are talking about right now on this show people say that bonds and gold cannot both be hitting new all time highs simultaneously because that would mean that inflation and deflation are happening simultaneously let me break it down for you a bustling the bond market is being bought up by computers. the gold market is being bought up by people who are fearful but the bond market is being bought up by computers just and i'm saying one is real people and the governments are buying gold the other one is think a bunch of computers are buying treasuries to make it look like the u.s.
economy is not as catastrophic as it really is and that can only last so long well the reason why people are going to gold instead of the treasury according to this article and really holds dot com gold does not carry a downgrade risk as do treasuries so this is the beginning just like i said she's going to have us pulling his gold out of the bank of england this could set a bank run on the bank of england and all their gold this is also the same thing they downgraded the s. and p. this is the beginning of the rush out of treasuries and into gold it is it is a run of the bank answer masked the collapsed structure the computers to buy more treasuries using borrowed money which is only making people buying gold want to buy more gold like i said treasuries carry the downgrade risk or at least they did until last week d.o.j. probing s. and p. the investigation centers on the alleged cases in which the company's alice sought to award lower ratings than mortgage bonds but had other s. and p. managers over will them the department of justice in america alleges that they
began the program s.n.p. before the downgrade if us that they're going to rewrite the story of the boy who pointed out that the king abdullah clothes in this version the king investigates the boy for having faulty eyesight. well so i mean yes s. and p. did faulty grade these things but our fiction oh it won't always go oh no no they didn't fall to the grave these things that two trillion dollars error supposedly according to our body peter schiff this was an assumption of certain growth parameters will be met there's no way in heck any of the growth parameters will be met this is a straight up and straightforward honest to goodness report there is no true trillion dollar error s. and p. made the right call the fact that they're now being vilified by the people that they made the call against doesn't invalidate the call well i'm talking about the mortgage securities when they rated the mortgage securities that have exploded and across the entire global economy the s. and p.
rated all of those goldman sachs c.e.o.'s they redid them triple a they redid all of those things aaa that they sold to french banks german banks swiss banks italian banks all those things glowing up economies were rated aaa by s. and p. they were they were also rated aaa by moody's they were rated aaa by fitch those two are not being investigated as far as we know at the moment because it's only s. and p. that has downgraded u.s. government debt now this is the question people are going into gold because treasuries carry a downgrade of risk or at least they did until the department of justice and the message to those who dared to downgrade it ok well so let's look at where this message is going matt taibbi a whistleblower claims that over the past two decades that agency has destroyed records of thousands of investigations by white washing the files of some the nation's worst financial criminals the f.c.c. has kept an entire generation of federal investigators in the dark about past inquiries into insider trading fraud and market manipulation against companies like
goldman sachs deutsche bank an ai g. so what do you think about this story here that the s e c is the one that was through has deleted files that is breaking the law by the way because according to the law they're supposed to save these files. for twenty five years you write. have substance to the idea that there is a criminal racket because the f.c.c. and the investment banks and the fund managers of the rating agencies and other aspects of government are cool looting to create this on the whole the racket of price manipulation and price fixing and extraction and siphoning of wealth for their own and ground at the jeopardy of destroying society was their doing and only it also part partially explains not why obama keeps on saying we have to look forward because in fact there's no way to look back because all the records have been destroyed as darcy flynn the the whistleblower in this case said it pays a startling picture of a federal police force that is affectively been conquered by the financial
criminals it is charged with investigating you know it's also remarkable is that the crash in interest rates you would think it would spur a refinancing boom for homes but what they're finding is that there's so much of a mess in the mortgage market that people who could normally refinance and spur the economy because all the paperwork was fraud fraudulently signed and induced that they this normal machination of lower rates to grow the economy is not working either so fraud is just totally blocked any potential growth in the u.s. economy max mattei because dani says as one former f.c.c. staffer describes it the agency is now filled with so many wall street hot shots come often best to get a bank that has been infected with the goldman mindset from within and the golden mindset max what is the golden mindset greed and suicide banking and bank until you kill yourself. that's the goldman mindset their suicide bankers the
goldman sachs could be the aliens from outer space they could have spawned a banking parasite there eighty five broad street before they moved uptown and now they're they've they've made their way into all these right. sorry agencies there though there are the night of the living dead or i should say night of the living debt all right thank you hammer thanks so much for being on the kaiser report thank you max don't go away stay tuned much more coming away so stay right there. pretty three. four three. three.
three. three. for your media project c.e.o. don carty john tom. i welcome back to the kaiser report i'm max keiser let's go to town to see and talk with catherine austin fits he served in the george h.w. bush administration catheters also former banker and is now an investment advisor and blogger at the solari dot com catherine fitts welcome back to the kaiser report it's great to be back all right captain awesome fetch first matt being in the latest rolling stone asks is the f.c.c. covering up wall street crimes your thoughts. yes because economic model is
a criminal model so of course they're covering of crimes they have to so he said the economic model is a criminal model explored out a little bit in other words the banking system itself is basically a glorified ponzi scheme correct well we have an economy that superman and war who organized crime in and you know part of the profits that that organized crime is part of what's keeping the whole economy going it's not just the banking system it's every community in america so if you let me give it this way if the united nations says we're competing for four hundred billion dollars a year global money laundering then then this financial centers to track and money laundering are the leaders ok let me follow up on this money laundering fane because. now owned by walls fargo which is owned in large part by warren buffett has just been fined two percent of one year's profits for laundering three hundred seventy eight billion dollars in drug money for the
mexican drug cartels what about the settlement is that an adequate deterrent first of all you know absolutely no one if you're if your business model is ended on a tracking this revenues and processing is for a nice do there's no way it's fine like this and you have to turn to something that you know is something is part of what i do you are an essential part of the business model of a sign like this will stop it ok let's talk about the proportion of these banks first of all the banks in the u.s. and in the u.k. kind of talk about the u.k. a little bit and the g.d.p. numbers that are quoted in both of these economies as their relationship to what comes out of the banking sector it has grown fantastically over the past twenty five years and over the past ten years and particular from five or six percent twenty five years ago to twenty five thirty forty depending on how you make the
calculation fifty sixty percent. g.d.p. directly tied to financial a leisure jermain in the banking system so it's a fair to say that the g.d.p. numbers that come out of the u.s. and the u.k. are tied directly to banking fraud well i think i think you know they include being in front of the team flew through the securitization of economy so we're shifting much much much more of the economy into financial instruments that can be traded in representative and and you know there's new doubt that the fraud is very significant and part of the reason it's very significant is that it a lot of the fraud is turn with the internet support involvement of government so you really have a government banking model and a lot of it is done under the national security law ok i talk about securitization more and more of the economy moves into securitization more corporations who are reporting profits are reporting profits as
a result of transferring themselves into companies that get into the security securitization business but let's take an example for it goldman sachs for example the mortgage business we now know that the mortgages when they were originally offered there was fraudulent to spend then we know that they took the mortgages that they sold they repackage them or securitized them and fraudulently marketed them to funds around the world and then we know that they went into the foreclosure process and goldman and bank of america these other corporations and banks engaged in fraud on foreclosures so there's that so if you take away all the fraud associated with securitization and securitization itself as they are proven to be an inherently fraudulent business i mean the word ok first of all so what it what your thoughts are thought on that but i think it's much worse than you're describing actually. because you describe your recent word which is worse for it you will induce it's let me use an example of one house let's say we had a fraudulent need to use mortgage on their house but let's say we also cream. and
you know two mortgages that were completely fraudulent so so i think the collateral fraud you know if you take the description you described and you add collateral fraud. you know i think it was much worse and then when you hear the derivatives on top of something that's full of collateral front you know you're getting sued exponential for it so i think the fundamental through across this was for worse that you just described right so you have on top of the three phases a fraud that i just described the project inducement fraudulent scared ization and of course the fraudulent placement of those. securities and to funds around the world and you also have the securities and the the relatives that were created on top of the fraudulent securities on top of that so that adds to the ponzi scheme i mean we keep coming back to this word technically legal it's technically legal but in a in a country like america or the u.k. where the banking lobby has effectively taken over and change the laws repealed
glass steagall brought in the securities modernization act and made fraud legal i mean if you make fraud illegal is it enough to say well it's technically legal i mean at what point do we say and not as enough we need to take stronger measures. well i think i think at the heart of the matter minutes is not so the banks out of control i think at the heart of the matter is physical violence because a lot of what has happened particularly and you know that i understand in the united states is is you have people who are afraid to say no because the results are saying no it's physical violence directed at them or their families i mean we've had lots of people murdered in assassinated etc etc so the question is you know yes we have to say no but the question is how do we say no and that's why you know sort of it comes down to shifting our money but the reality is is is we have a force are operating in the world that is completely operating outside of the law
and and now when yet has come up with a way to stop it we're talking about my only violent mobster operations. but i never thought of apple he was a personal example but i was a i was. you know i was a former assistant secretary of housing and i had my own business in washington and i i was helping the department of housing and urban development essentially run things clean and you had to get rid of the clean teamster to run the housing bubble and i was targeted i was poisoned a dead animals left on my doorstep my house was broken into people tried to run me off the road. you know it was very very violent and it went on for years so you know so people who try and run the government clean or or run while street cleaner targeted and literally you know have to fear for their lives i mean people have been dying so. you know it's a very very dangerous this situation and then the challenge is if you have people
who can kill and physically harass with impunity how do you you know how do you run a governance process just for people who are unfamiliar what your role with the bush fared better strachan it was what exactly i was assistant secretary of housing so i was the lead break in later for the housing area and it you know it's very interesting that it's not at washington in one thousand nine hundred eight and i kept saying to people look you know their engine area housing bubble this is going to destroy the country it's going to go back or pecan tree and literally i'll never forget it in about two thousand but two thousand two thousand and one was supremo t.v. show had a whole series on hold fraud and my own college roommate called me up and said well fitz you must be telling the truth it's on the sopranos and i said why is it that there's a printer to be sure is this shows more credible than the former assistant secretary of housing but literally max i lectured in spokane one been in in wellington new
zealand all over the world in sweden trying to warn people about the housing bubble and the investment community in all those places simply just to. heard it even when standing mainly down in two thousand and eight i had been on the radio show in outside of san francisco explaining about the housing bubble. you know three years and one of the biggest investors in san francisco lost over a billion dollars and say make going down in peru it up a thing on their website and put it up and said you know we had no idea there was a problem well i was on the radio for years some resistance are going through housing saying you know describing a problem in retreat you know ok imagine fannie mae freddie mac. they were caught committing fraud they were bailed out by the government there are liabilities are now the taxpayer liabilities we've talked about are curvy air we talk about wells fargo we talk about bank of america all the banks committing
master fried securities fraud accounting fraud and. what role in the global accounting and securities fraud that you see in the banks how central is the city of london factor into this that max clearly the city of london is very important. and i would say the united states that european investment interests had been controlling since the revolutionary war from everything i can tell but you know the other thing i would say is we're talking about a model which is is is not just from hard it's it is the model it's the clan it's the governance model it's the way things are so there's the fissure reality that has flaws as you and i were brought up to believe it and then we have a system which believes it's above the law i mean i literally had the secretary of hud once say to me look you know i don't have to pay attention or i don't have to
be able or i report to a higher moral authority so we have to plan or run under a model this is our parading in. different set of rules or laws that we believe the law to being now if you look at how much of money's been pulled out of the economy globally whether it's by united states line or whatever we're talking about trains the trillions of dollars and you know what i refer to a lot of it in the united states is the black budget but the fundamental question is where is all of this money going because we're talking about truly trillions and trillions of dollars that have been fought out and managed according to recent you know i call it a financial community car and the question is who's running the financial could retire and weirs on the money go on because it's very very significant and it's a system that doesn't consider itself to have to obey the laws that you and i are talking about now ok let me ask you a question about the europe of a european debt crisis french president sarkozy and german chancellor merkel have
proposed a quad collective government headed by be you president or your thoughts so essentially what we're watching is this is the economic failure essential essential ization the more essential lies the weak of the economy scared going to get so what they just said is socialization has just wrecked europe so what we're going to do is we're going to do more essential this nation will of course that's the worst thing you can do so you know this i hate to say this because i don't think europe has a debt crisis i think europe's governance is being really engineered in bed is being used to do it so we go into a place we encourage them to take on more debt than they could ever afford then we do a serious offense to pull the income and we say we have a debt crisis and then we start dictating to them terms by which they will start being run as a sovereign government and instead report up to the top of the financial system so
that's why i call it a financial clearly tired because. you know it's not a debt crisis it's a plan all right cap it off unfair thanks so much for be. the kaiser report. right now is going to do it for this edition of the kaiser report with me max has been stating over and i guess catherine austin fit if you want to send me an e-mail please do so at kaiser report at r t t v are you at all next time this is max keiser sitting by. a timer here broadcasting live from washington d.c. coming up today on the big picture.